NY Fed chief signals December rate cut
New York Fed President John Williams said Friday he sees room for a near‑term adjustment to bring policy closer to neutral, a strong signal the Fed could cut rates at its Dec. 9–10 meeting. His remarks at the Central Bank of Chile’s conference sent market odds of a December cut to 73% (from 39% Thursday), lifted the S&P 500, and rallied Treasuries, even as Dallas Fed’s Lorie Logan cautioned against another cut without clearer evidence on inflation and the labor market.
Federal Reserve
Monetary Policy and Markets
📌 Key Facts
- John Williams: “I still see room for further adjustment in the near term…to move the stance of policy closer to the range of neutral.”
- CME FedWatch odds for a December cut jumped to 73% after the speech (from 39% Thursday).
- FOMC’s next policy meeting is Dec. 9–10; Dallas Fed’s Lorie Logan argued a December cut would be difficult without faster‑than‑expected inflation cooling or a quicker labor‑market slowdown.